Second Mortgage in Kanata
As a homeowner, you are entitled to a significant asset. If you find yourself in a financial bind, you may want to be able to access that asset without selling your home. Getting a second mortgage allows you to do just that.
To discover your options and find the best second mortgage interest rates in Kanata, get in touch with the team of mortgage experts at Borrowing Made Simple and book a consultation today. Call (343) 763-2019.
How Does a Second Mortgage Work?
A second mortgage allows a homeowner to take out an additional mortgage on their home and access quick cash. Getting a second home mortgage may be a good idea for those who are facing pressing financial responsibilities, such as medical expenses.
When a homeowner qualifies and receives a second mortgage, they must pay off the two mortgages simultaneously. The second home mortgage will usually last for a 1 to 2-year term, at which point the homeowner can choose to extend the period.
The second mortgage must be taken out under a different lender than that of the first mortgage. This is done to protect the lenders in the event that the homeowner cannot pay off either mortgage. The first lender will be paid off before the second in a foreclosure, it is for this reason that second mortgages have higher interest rates due to their high-risk nature.
Is Taking Out a Second Mortgage a Good Idea?
Taking out a second mortgage can be beneficial to those with high consumer debt—so long as habits change too. Accessing those funds is tempting—however, second mortgages are in no way risk-free. There are a few factors that are crucial to consider before pursuing this option, including:
- Higher interest rates
- Higher risk of foreclosure
- Short repayment terms
The team of experts at Borrowing Made Simple can discuss your options with you and help you decide whether taking out a second mortgage is a good idea for you.
How Much Can You Borrow on a Second Mortgage?
The amount you can borrow depends on your property value and how much the lender is willing to lend you. Usually, a homeowner can borrow up to 80% of their home equity, minus the amount owing on the primary mortgage.
What Are the Main Differences Between a Home Equity Loan and a Second Mortgage?
A home equity loan and a second mortgage are very similar, but some key differences must be outlined.
- Quick access to funds
- Qualification is relatively simple
- Shorter terms
- Higher interest rates
Home Equity Loan
- More challenging to meet qualifications
- Requires proof of employment
- Requires good credit
- Longer terms
- Lower interest rates
Discover Kanata’s Best Second Mortgage Rates with Borrowing Made Simple
Whether you are facing medical expenses, outstanding loans, or emergencies, taking out a second mortgage could provide you the fast cash you need to meet these financial obligations.
At Borrowing Made Simple, we have been guiding homeowners through mortgage decisions for years. We will take the time to understand your finances and make appropriate recommendations.
Get in touch with us to get started today!
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